Technical analysis: 10 June 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Former Senior Technical Analyst
Date posted:
10 June 2021, 10:30 AM

Superloop (SLC) – Double Blessed Buy

The primary down trend from the September 2016 high has clearly lost momentum over the past year and the price appears to have been in the process of building a large bullish inverse head and shoulders pattern.

The price development since August 2020 appears to be part of a complex right shoulder.

Complex shoulders usually indicate that momentum has not quite kicked in, but still suggests that the pattern is likely approaching completion.

Wednesday’s price action broke above minor resistance of $1.06 suggesting that the current upswing is likely to extend to its neckline crossing at $1.25.

A subsequent break above key resistance of $1.25 is likely and is the required confirmation for the pattern, which would signal that a new primary up trend has started.

The initial medium-term upside price target based on the anticipated breakout is $1.50.

Whitehaven Coal (WHC) – Double Blessed Buy

WHC has been trading sideways over the past ten years fluctuating within the boundaries of a wide range between $0.34 and $5.98.

The latest primary down trend from the July 2018 high has clearly lost momentum over the past nine months and the price has been in the process of building a base.

The weekly RSI indicator broke above its bear market resistance suggesting that the down trend is likely to reverse course.

Wednesday’s price action broke above its key resistance of $1.87 and has confirmed an imperfect ascending triangle.

The pattern has bullish implications over the long-term and confirms that the prior primary down trend is now complete and that a new primary up trend is starting.

On Wednesday the daily RSI indicator reached 79% and has entered its bull market range.

The initial upside price target based on the breakout is $2.50. In the short-term, a pull back to unwind the overbought momentum conditions is likely and would provide a good buying opportunity.

Helloworld (HLO) – Approaching key support

The recovery from the March 2020 low has lost momentum over the past year and the price has been trading sideways, fluctuating between $1.49 and $3.36.

The current secondary decline is approaching its key support of $1.49 where strong buying interest is likely to arise.

The medium-term down trend line on the daily RSI indicator has been broken upwards showing that momentum is improving.

The down trend line from the November 2020 high has been breached earlier in the week showing that the decline is losing momentum and the price is likely to stabilize soon.

Given the proximity to support and to oversold momentum levels we are of the view that the decline is likely to reverse course soon.

We see the current and any further short-term share price weakness as an opportunity to accumulate the stock.

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Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

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